Housing (Property Development)

Creates the Tenant Opportunity to Purchase Act. Establishes a statutory right of first refusal for tenants and tenant associations if an owner seeks to sell a residential rental property in Illinois. Applies to all rental property with 11 exceptions. Allows tenants or a tenant association to purchase the property on the same terms as a third-party offer. Requires owners to provide advance notice of intent to sell no less than 60 days before listing for buildings with 5 or more units and no less than 30 days for buildings with 4 or fewer units. Requires that the notice must include property details, asking price, and a summary of tenant rights. Provides that after receiving a notice of sale, tenants of 5 or more units have 90 days to form a tenant association, for 3-4 units have 30 days; and for 1-2 units, at least one tenant has 15 days to declare intent to exercise the right of first refusal. Provides that tenants must match the third-party offer and provide the owner with a letter of intent of financing or preapproval within 120 calendar days from the date of the notice for 5 or more dwelling units and 60 days for 4 or fewer units. Prohibits the owner from requiring a tenant to pay a deposit of more than 5% of the contract sale price. Provides a civil cause of action and remedies for a violation of the Act. Authorizes the Illinois Housing Development Authority to adopt rules. Makes other changes.

Creates the Faith-Based Housing and Mixed-Use By-Right Act. Provides that a unit of local government shall permit multifamily developments and mixed-use developments as allowable by-right uses on faith-based land. Provides that a unit of local government may not require a proposed multifamily or mixed-use development on faith-based land to obtain any discretionary approval in order to permit the proposed use and development or allow for the minimum development standards and limitations established by the Act. Provides that the by-right entitlement under the Act applies whether or not the faith-based organization continues to operate an existing religious, educational, or community facility on the same parcel or adjacent parcel, and regardless of whether the housing is owned, leased, operated, or developed by the faith-based organization or by a partner acting under agreement with the faith-based organization. Provides that nothing in the Act affects the authority of a unit of local government to apply to a development authorized by this Act requirements that are (1) generally applicable to comparable developments within the jurisdiction; (2) objective and ascertainable on the face of the ordinance or code provision; and (3) related to public health and safety. Provides that a unit of local government shall approve an application for a multifamily or mixed-use development on faith-based land if the development satisfies the unit of local government's generally applicable, objective land development and building regulations as limited by the Act. Limits the concurrent use of home rule powers. Effective immediately.

Appropriates $50,000,000 from the General Revenue Fund to the Illinois Housing Development Authority for the purpose of depositing into the First-Generation Homebuyer Down Payment Assistance Fund to provide down payments and closing costs assistance to eligible first-generation homebuyers, and other administrative expenses under the First-Generation Homebuyer Down Payment Assistance Program. Effective July 1, 2026.

Amends the Illinois Housing Development Act. Requires the Illinois Housing Development Authority (Authority) to establish and administer a First-Generation Homebuyer Down Payment Assistance Program to provide targeted assistance to eligible first-generation homebuyers throughout the State for the purchase of a single-family or non-commercial multi-family residence. Sets forth eligibility requirements. Permits the Authority to prioritize assistance to applicants purchasing homes in designated community priority areas, applicants with household income below 80%, and applicants purchasing homes in areas with low homeownership rates, high housing costs burdens, or limited access to affordable mortgage credit. Provides that assistance under the program shall be provided as a forgivable loan to be forgiven pro rata on a monthly basis over a 5-year period of continuous owner-occupancy. Sets forth the available loan amounts and provides that assistance funds may be used for down payments, closing costs, mortgage insurance, interest rate buydowns, or principal reduction. Permits the Authority to waive repayment in cases of documented financial hardship that is beyond the control of the homebuyer. Permits the Authority to adopt rules to implement and administer the program. Effective July 1, 2026.

Amends the Illinois Housing Development Act and the Illinois Income Tax Act. Provides that the amount of credits awarded under the affordable housing tax donation program is limited to $41,831,227 in State fiscal year 2027 and shall increase by 10% each fiscal year thereafter (currently, $32,850,352 in State fiscal years 2022 and 2023 increased by 5% each fiscal year thereafter). Provides that the affordable housing donation income tax credit applies through the taxable year ending on December 31, 2036 (currently, December 31, 2026). Effective immediately.

Amends the Counties Code. Provides that specified counties may acquire real property for the purpose of creating or preserving affordable housing for persons making up to 150% of area median income annually. Provides that specified counties may enter into agreements to transfer real property with any unit of local government, any school district, or the State for the purpose of creating or preserving affordable housing for persons making up to 150% of the area median income annually. Provides that specified counties may enter into agreements to donate, lease below market rate, or sell below market rate, real property for the purpose of the creation or preservation of affordable housing for persons making up to 150% of area median income annually. Provides that specified counties may undertake any activity permitted by the Affordable Housing Planning and Appeal Act for the purpose of creating, developing, encouraging the development, or preservation of the development of affordable housing for persons making up to 150% of area median income annually. Provides that specified counties may select purchasers and lessors for properties held by the county, a county land bank, or county land trust. Provides that specified counties may encourage and facilitate the creation of affordable housing within the geographic boundaries of the county, including areas within municipalities, by offering financial incentives, including but not limited to grants and loans, and infrastructure improvements, including but not limited to, stormwater detention, public water and sewer improvements, and similar improvement which facilitate increasing the supply of affordable housing units shall be considered improvements for a public purpose, to developers of affordable housing units. Provides that specified counties may enter into agreements with property owners to engage in clearance and remediation activities. Provides that, as part of an agreement, or in return for an infrastructure improvement, a county may impose a restriction on the title of an affordable housing development subject to the agreement that restricts the income level of inhabitants of all or part of the development.

Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish and implement a Veterans' Economic Center pilot program for the purposes of assisting veterans in finding employment and addressing the problem of veteran homelessness. Amends the Illinois Income Tax Act and the Economic Development for a Growing Economy Tax Credit Act. Provides that a taxpayer who receives a credit under the Act for a taxable year ending on or before December 31, 2027 pursuant an Agreement entered into on or after the effective date of the amendatory Act may apply only 98% of that credit amount against his or her State income tax liability in any taxable year. Provides that the remaining 2% of the total credit amount awarded shall be transferred from the General Revenue Fund into the Veterans' Economic Center Fund. Provides that moneys in the Veterans' Economic Center Fund shall be used by the Department of Commerce and Economic Opportunity to administer the Veterans' Economic Center pilot program. Amends the State Finance Act to create the Veterans' Economic Center Fund. Effective immediately.

Amends the Illinois Income Tax Act. Creates an income tax credit for developers that invest in a qualified project redeveloping a brownfield or grayfield. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Creates an exemption for tangible personal property that is purchased by a developer who has been awarded a certificate of exemption by the Department of Commerce and Economic Opportunity and that is used to rehabilitate brownfield or grayfield property. Effective immediately.

Amends the Public Utilities Act. Provides that termination of water utility service to a residential user, including a tenant of a mastermetered apartment building, for nonpayment of bills is prohibited: (1) on any day when the National Weather Service forecast for the following 6 days covering the area of the utility in which the residence is located includes a forecast that the temperature will be 32 degrees Fahrenheit or below; (2) on any day when the National Weather Service forecast for the following 6 days covering the area of the utility in which the residence is located includes a forecast that the temperature will be 90 degrees Fahrenheit or above; or (3) when the National Weather Service issues an excessive heat watch, excessive heat warning, or heat advisory covering the area of the utility in which the residence is located. In provisions concerning procedures for a large public utility to acquire a water or sewer utility, provides that if the water or sewer utility being acquired is owned by the State or a political subdivision of the State, a referendum will be required to approve the acquisition of the water or sewer utility by the large public utility (rather than only requiring a public meeting and publication of the terms of acquisition in a newspaper of general circulation in the area that the water or sewer utility operates). Effective immediately.

Creates the People Over Parking Act. Provides that, except as otherwise provided in the Act, a unit of local government may not impose or enforce any minimum automobile parking requirements on a development project if the project is located within one-half mile of a public transportation hub. Limits the concurrent exercise of home rule powers. Defines terms. Effective June 1, 2025.